The Indian Rupee is expected to appreciate on Tuesday amid weakness in the dollar, optimistic sentiments in the domestic markets. However, expectations of higher PPI data from the US is expected to provide some support to the dollar. “US$INR (March) is likely to move towards 76.30 for the day,” said ICICI Direct. Rupee inched slightly lower on Monday against the US Dollar. At the interbank foreign exchange market, the local unit opened at 76.63 against the greenback. During the day, it swung between 76.52 and 76.69 before finally settling at 76.55, down 11 paise from previous close.

“USDINR 29 March futures contract traded steady on Monday. On daily technical chart, we observed that a pair is trading above its trend line resistance but facing resistance at higher levels. Looking at the technical set-up, a pair could face steep resistance around 76.8500 levels. We have suggested sell on jump should be preferred Strategy in the pair around 76.85-77.10. We suggest to stay away in today’s session ahead of the FOMC meeting.”

“Rupee traded in a narrow range for the third successive session but losses for the currency were limited as uncertainty between Russia and Ukraine recedes. Also, global crude oil prices retraced from higher levels and that too supported the rupee. In the next couple of sessions, volatility could drop ahead of the important FOMC policy statement that is scheduled to release tomorrow midnight. Hawkish commentary from the Fed Chairman is likely to extend gains for the dollar. Today, focus will be on the employment number that will be released from the UK and weak number could keep the currency weighed down against the US dollar. We expect the USDINR(Spot) to trade with a positive bias and quote in the range of 76.40 and 77.20.”

“In Monday’s session, the Indian Rupee made a weak opening at 76.62 levels from its previous closing levels of 76.59 levels. Throughout the day it traded in a tight range between 76.52 to 76.69 levels. In the upcoming session, the performance of USDINR is going to be lull again. Crude prices have cooled off quite a bit from the highs, but still, remain uncomfortably high as trade negotiations between the EU, US and Iran go on-off giving a ray of hope to the markets considering the Russian oil ban. The RBI will probably intervene intermittently to keep speculation and volatility in check, but it is unlikely to be too averse to the rupee’s decline in the face of an overall selloff in EM currencies.”

“The Indian rupee likely to trade mixed note as Oil extended losses following another volatile session after a cease-fire in Ukraine was discussed, while there were also concerns about crude demand in China due to a resurgence of Covid-19 there. Dollar rupee is facing resistance of its record high near 77.33 future levels sustain above which may head higher towards 78 marks while on flip side support is placed near 76.35 followed by 76.00 levels. Considering current trading setup and global sentiments buying to dips near support levels will be better strategy while keeping stop loss below 76.00 near month levels.”